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Strategies & Market Trends : The Final Frontier - Online Remote Trading
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To: TraderAlan who wrote (6337)1/31/1999 5:28:00 PM
From: steve goldman   of 12617
 
Someone mentioned that market makers were no different than daytraders with the exception of few components. 1) They do have a lock, a monopoly on the market 2) they are fully committed to the tune of hundreds of millions in technology and salary to being the successful party in the transaction 3) they have the order flow coming in from retail clients.

Market makers have no interest in taking positions in stocks for a 2 minute run, guessing at whether it goes up or down. They trade against order flow, retail clients coming into the Eschwabs, etrades, of the world, and simply try to make teenies and 1/8ths on those orders. Many traders at market making firms probably consider their jobs mundane and kind of boring except for the fact no position on a trading desk is easy going, particularly given recent volatility.

If a trader is making his job exciting, he is probably making it more interesting than his 'supervisors' would want it. They simply want to bang out eigths against order flow.

So they have an even greater advantage. They already have the other side, the retail clients' order. And that is a world of difference. It takes it from a gamble to a profession.

Regards,
Steve@yamner.com
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